Will Life Insurance Cover Mortgage?

Chad L: Alright guys, Chad Luitwieler here with Luitwieler Family Insurance, and today’s question is will life insurance cover a mortgage? And the question is yeah it can, definitely. Basically that’s probably one of the most popular times. That and when a family maybe starts having kids or gets married. Buying a house is really the most popular time; people buy life insurance coverage just to help pay the mortgage and it’s framed in different ways. Some people call it mortgage protection insurance. Here, I … It’s just life insurance, just a variation of life insurance and basically what you’re doing is you’re just making sure that you have enough coverage to cover the mortgage amount in case something were to happen to you in the next 30 years, or the length of the mortgage. I don’t like just mortgage protection as some people call it because once you pay off the mortgage, if something were to happen to you, there’s no money at the end of the day to help cover any additional expenses or living expenses for your family or your kids or college or anything like that.
So there’s a couple of different types I’d recommend. To get that amount of life insurance coverage, definitely look at term life insurance. You can get a lot of coverage for cheap and you’re locking it in based on your age and your health right now. In addition to that, there’s another product out there which is term life insurance. But instead of getting a lump sum payment of say 300, 500, even a million dollars. If something were to happen to you, basically is gonna pay out to your family over the course of three to five years at fixed dollar amount. That amount can be as low as $2,500 a month. But the most common one that we see is $5,000 a month. So your family would receive a $5,000 a month payment over the next three to five years to help cover the mortgage and other expenses if something were to happen. So term life insurance is a way to go to make sure you have enough coverage. You cover the mortgage plus other additional expenses. But yes your life insurance could cover your mortgage and I hope that answers that question. Have a good day.